Trusted Nashville CPA Warns Freelancers of Common Money Mistakes

 The way we work is changing and freelancing is one of the factors leading this revolution. As an article from CNBC.com notes, almost one-third of Americans now do freelance work—a trend that was only further accelerated by the current pandemic.

If you're self-employed, however, you're also responsible for tracking and reporting your cash inflow and outflow. As Nashville CPA Evan Hutcheson notes, both longtime and neophyte freelancers should avoid these money mistakes:

Not setting up a corporation

As a freelancer, the line between what's business and what's personal is very slim. However, it is in your best interest to set up a separate corporate entity to represent your freelance operations. This way, if you get sued or have outstanding financial obligations, only your business' assets will be on the line and not your personal assets (such as your home).

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How a Nashville Accounting Firm Can Help You Survive Financial Woes

 

According to AccountingToday.com, microbusinesses continue to face bookkeeping challenges throughout the pandemic. They cited a survey conducted among 1,008 microbusinesses, which indicated cash flow as one of the major pain points. Problems in cash flow were caused by overdue customer payments.

A closer look at the problem showed limitations in payment methods offered by businesses. Prior to the pandemic, most of these businesses only accepted cash or check payments and did not rely on an accounting firm for financial resolution strategies. 

When it comes to cash flow challenges, a CPA can be one of the most qualified to help your Nashville business. With their help, you can identify problems that limit your cash flow and implement immediate solutions to prevent further financial distress.

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Nashville CPA Tips on Improving Business Cash Flow Post-Pandemic

 

With the continuous roll-out of COVID-19 vaccines, businesses are expecting to get back on their feet this year. Some businesses may have struggled staying afloat, and this is where a Nashville CPA can help.

You may think hiring an accountant might just be another overhead expense, but it comes with a number of financial benefits, especially if you want to improve your cash flow. Payroll and tax preparation are just a couple of the areas that can be looked into to help your business overcome financial challenges. 

Here are a few tips on how to improve your cash flow post-pandemic:

1. Evaluate your expenses regularly.

While many have implemented salary cuts and retrenchment to help mitigate the impact of the health crisis, businesses should also look at small scale financial losses.

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Top 5 Reasons Why You Need a Nashville CPA Firm for Your Bookkeeping

 

Starting and managing a business is a tough job, let alone bookkeeping for your business. Bookkeeping is a different ball game and something that needs to be handled with complete accuracy. If your Nashville business doesn’t have the in-house expertise for it, you may be better off outsourcing bookkeeping to a trusted CPA firm in the area.

There are many things to consider in bookkeeping, such as the type of business you run and the types of services your business would need. Small to medium-sized businesses have varying needs that range from consultancy and training to the actual accounting practice. Specific services you need to look into include payroll, tax returns, and financial reports.

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Missed the Deadline for Filing Your Taxes? Call a CPA Immediately

 The last day to request for an extension in filing your taxes in Nashville was May 17. If you haven’t filed your taxes and missed the deadline, it’s best to call your CPA immediately and get guidance on what to do next.

The IRS does not take nicely to taxpayers who fail to file and pay their taxes on time. You need to have a very good reason or a “reasonable cause”, such as a natural disaster of getting incapacitated, for not meeting your tax obligations within the annual deadline. 

Outside those causes, not filing and paying your tax returns is considered a criminal offense which might get you jail time of one year for every year you failed to pay your taxes.

That said, you can avoid a stiff punishment by filing your returns even after the deadline. While you can avoid going to jail, however, you have to face penalties and interests for late payments.

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Why You Need an Accounting Firm When Starting Your Small Business

 Now that the Nashville economy appears to be headed to recovery, it’s a good time to think about starting that business you’ve always wanted to do. In drawing up your plans, you’ll need the help of an accounting firm who can provide you with guidance on crucial financial matters, from funding your business to setting up and implementing your accounting systems.

This raises the question, should you work with a CPA for your small business or would a non-certified accountant meet your requirements? 

Here are some things to consider.

Do you need to hire a CPA for your small business?

You are not required to hire a CPA or even a non-certified accountant. If you have the knowhow, you can even do your own bookkeeping, payroll, and other everyday accounting needs, especially when you have an efficient accounting software.

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Acquire an Existing Business with the Help and Guidance of Your CPA

 

As a result of the shutdown of Nashville’s economy, many small business owners feel it is now time to throw in the towel and start fresh somewhere else. In particular, baby boomers who have been considering getting out of the game even before the pandemic may want out now more than ever. 

If you think you have what it takes to keep a small business going and give it new life, especially after the pandemic, don’t hesitate to consult a CPA to get crucial financial advice and guidance on your next steps. Keep in mind that any investment involves risk. To minimize that risk, it’s important to work with a financial professional.

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